Mesa West Capital has provided Sares Regis Group with $139.88 million in first mortgage debt for its acquisition and repositioning of a 386-unit multifamily property in Broomfield, CO. 

The five-year, floating rate loan is secured by Terracina Apartments located at 13620 Via Varra Road in the Denver metro area. Built in 2010, the 16.5-acre community offers a variety of one- and two-bedroom apartment homes housed in four four-story residential buildings. The community features a wide range of amenities including a pool and hot tub, a clubhouse and fitness center, co-working lounge, dog park and pet wash, fire pit and grilling area, and outdoor games area. 

A portion of the loan proceeds will help to fund the sponsor’s capital improvement plan that will feature upgrades to unit interiors as well as the renovation of the community’s common areas.

Terracina Apartments is well situated between Denver and Boulder, site of the state’s flagship university, the University of Colorado. Located close to U.S. 36 and rapid transit, the property draws from the Mile High City’s major growth and Boulder’s tech and life sciences sectors.

“Broomfield is uniquely positioned between Denver and Boulder, pulling from those major economic engines with more affordable housing options,” said Mesa West Capital Executive Director Josh Westerberg, who led the origination team out of the private lender’s San Francisco office.  “The area’s consistent annual rent growth is proof of that attractive market dynamic. The planned capital improvements for Terracina Apartments will add even more value to this property.”

Over the last decade, Broomfield has experienced tremendous growth, outperforming surrounding metro Denver cities. In particular, skilled millennials are drawn to its high quality of life and much lower housing costs, according to Westerberg. Terracina Apartments offers residents quick connections to Broomfield’s major employers, including Vail Resorts, VMware, OpenText, Crocs, Trimble and SCL Health. Also, Oracle leases more than 1 million square feet across six buildings in the city. 

Terracina Apartments was 95.1 percent leased at closing.

The financing was arranged by Brian Torp, Managing Director in the Orange County office of Jones Lang LaSalle.  

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Mesa West Capital has provided Newport Beach, CA-based real estate development and investment firm Sares Regis Group with $65 million in first mortgage debt for the acquisition of a 169-unit multifamily community in Los Angeles’ Mid-Wilshire neighborhood.

Mesa West Capital’s five-year, floating-rating loan is secured by The Preston, a four-story, high-density community located at 630 Masselin Avenue. The property features a mix of studio, one- and two-bedroom floorplans, and also includes a 336-car parking garage with EV parking stations, pet park, resort-style pool and clubhouse with fitness center.

Situated one-half block north of Wilshire Boulevard, between Fairfax and La Brea Avenues, in what is commonly referred to as The Miracle Mile, the neighborhood benefits from a vibrant social and cultural infrastructure with 1.2 million square feet of retail, entertainment and dining options, as well as Los Angeles’ largest collection of museums. Los Angeles’s famed “Museum Row” includes the Los Angeles County Museum of Art, the La Brea Tar Pits and Museum, the Craft Contemporary and the Petersen Automotive Museum.  Additionally, the Academy Museum of Motion Pictures at Fairfax and Wilshire will open in December 2020.    

The Preston is also within walking distance of two future subway stations along the Metro Rail’s Purple Line extension.  When completed in 2023,  both the Fairfax and La Brea Metro stations will offer access to downtown Los Angeles. Phase 2 and 3 of the expansion, due to open in 2025 and 2027, respectively, will extend the line west to Beverly Hills, Century City and Westwood.  

Sares Regis Group will immediately begin a multi-million-dollar capital improvement campaign focusing on exterior, common area and amenity upgrades to create a more contemporary aesthetic.  The plan also includes renovations to apartment interiors as units roll. 

The origination team was led by Mesa West Capital Director Joshua Westerberg out of the private lender’s San Francisco office.The financing was arranged by Jesse Weber and Scott Williams with CBRE out of its San Francisco office.